Researchers reveal that the integration of states into the global economy is often seen as a significant factor of the growing income and growth. Foreign trade grows the worldwide economy and at the same time can become a significant driver of Pakistan’s economic growth. Foreign trade promotes efficient resource allocation, enables a state to realize economies of scale, facilitates knowledge diffusion, promotes technological progress, and fosters competition in local and foreign markets, leading to production processes optimization and new product development. Substantial attention has been paid to the examination of trade balance effects on economic growth as it becomes a significant indicator of a country’s competitiveness and is important in assessing the country’s economy and its relations with the rest of the world.
In the developing countries like Pakistan, researchers have also identified that Pakistan is suffering deficit in the balance of payments that has lasted for many decades. Trade deficit is main reasons which have very harmful effect on the economy of Pakistan. Most of the developed countries are facing trade deficit. Trade deficit have the negative effect on the economy. The Government of Pakistan is still trying to improve the trade deficit condition in the country. Analysis of Pakistan Bureau of Statistics (PBS) identified that based on the provisional statistics of imports and exports the balance of trade during October, 2020 was recorded (-)293,497 million in terms of Rupees and (-) 1,803 million in US dollars. The balance of trade statistics cumulative from July-October, 2020 were recorded (-) 1,262,550 million in terms of Rupees and (-)7,617 million in US dollars. Furthermore, the PBS also identified that imports into Pakistan during October, 2020 amounted to Rs. 636,036 million (provisional) as compared to Rs. 712,600 million (provisional) in September, 2020 and Rs. 631,908 million during October 2019 explaining a decline of 10.74 percent over September, 2020 but a rise of 0.65 percent over October 2019. In terms of US dollars the imports during October, 2020 were $3,907 million (provisional) as against to $4,297 million (provisional) during September, 2020 explaining a decline of 9.08 percent and by 3.58 percent as against to $4,052 million during October last year.
The experts said that PBS data showed that imports during July-October, 2020 totaled Rs. 2,517,363 million (provisional) as compared to Rs. 2,397,880 million during the same period of previous year showing an increase of 4.98 percent. In terms of US dollars the imports during July-October, 2020 totaled $ 15,193 million (provisional) as compared to $ 15,251 million during the same period of previous year showing a decline of 0.38 percent. Statistics also showed that main commodities of imports in October, 2020 were registered Petroleum products (Rs. 62,095 million), natural gas, liquefied (Rs. 36,771 million), petroleum crude (Rs.30,447 million), plastic materials (Rs. 30,291 million), iron and steel scrap (Rs. 26,008 million), Iron & steel (Rs.24,591 million), wheat unmilled (Rs.18,614 million), electrical machinery & apparatus (Rs.14,907 million), sugar (Rs.14,412 million) and palm oil (Rs. 13,668 million).
According to the provisional statistics compiled through the Pakistan Bureau of Statistics, exports from Pakistan in October, 2020 amounted to Rs. 342,539 million (provisional) as compared to Rs. 313,019 million (provisional) in September, 2020 and Rs. 314,928 million during October, 2019 explaining a rise of 9.43 percent over September, 2020 and of 8.77 percent over October last year. In terms of US dollars the exports during October, 2020 were registered to $ 2,104 million (provisional) as against to $ 1,887 million (provisional) in September, 2020 explaining a rise of 11.50 percent and by 4.21 percent as against to $ 2,019 million during October last year. Exports during July-October, 2020 totaled Rs. 1,254,813 million (provisional) as compared to Rs. 1,183,957 million during the corresponding period of previous year showing an increase of 5.98 percent. In terms of US dollars the exports during July-October, 2020 totaled $ 7,576 million (provisional) as against $ 7,529 million during the corresponding period of last year explaining a rise of 0.62 percent. Statistics of PBS also showed that main commodities of exports during October, 2020 were knitwear (Rs. 52,549 million), bed wear (Rs. 40,386 million), readymade garments (Rs. 40,045 million), cotton cloth (Rs. 27,321 million), rice others (Rs. 14,879 million), towels (Rs.12,804 million), made up articles (excl. towels & bedwear) (Rs.11,099 million), cotton yarn (Rs. 9,744 million), basmati rice (Rs. 7,807 million) and fish & fish preparations (Rs. 7,090 million).